All three important rating agencies view the opening of the corporation’s office in Belgrade as a signal of stability.
In the talks in Washington, in which the Serbian delegation is participating, one of the possibilities that is being negotiated is the opening of the office of the American International Development Financial Corporation (DFC) in Belgrade. Namely, that was pointed out by the President of Serbia, Aleksandar Vucic, who estimated that it would be a great signal for the arrival of investors in our country.
Economists believe that this could mean a practical turning point in the level of American investments in Serbia and the Balkans, and in the long run, it could bring new jobs and additional revenues to the Serbian budget.
As Vucic stated, if that happened, they would not have their office anywhere else in the Balkans except in Belgrade.
– That would be a terrible signal for all American investors, and especially for our people who live here, in the USA, to come to Serbia. It has not been completely agreed yet, but it is extraordinary news for all three important rating agencies: Standard and Poor’s, Moody’s and Fitch. It is a terribly important news that would further raise the relations between Serbia and the United States, because we are becoming so much more interesting for the American capital market and for their businessmen – said Vucic last night.
Economist Ivan Nikolic explains that opening such an office in Belgrade would be not only an incentive to attract new investors, but also to expand the business with the American business community, and maybe even directly to the Serbian diaspora in America.
– In previous years, we had several larger investments from the American side, but more in terms of taking over existing companies than opening new ones. Dominant investments came from Europe and China, but in essence, America, as the largest economy in the world, was still not so economically present here, and this could in some way be a turnaround – Nikolic believes.
As he says, that would be a positive signal for more serious investment in Serbia and the region, and this institution, as he explains, represents a guarantee for business that takes place outside America.
– They guarantee that investments will be safe and that investors will be provided in case of some changes, if things go worse, something like an insurance company that monitors business activities. Of course, the companies that come certainly invest money here, employ our people, pay taxes, generate some added value, and all that contributes to our economy, which is good for Serbia – Nikolic estimates.
Economist Aleksandar Stevanovic also agrees that opening an office of such an institution in Serbia can bring benefits to our economy.
– American investors bypassed Serbia for some time, perhaps because their focus was on political instability, and the arrival of such an institution improves perception. It will not be a magic recipe, but in any case it will not hurt, I am sure of that – says Stevanovic.
It will be useful, as he says, for the citizens as well, because through this, for example, one could expect the creation of new jobs as a consequence of new investments.
DFC also has authorization for loans
The US International Development Finance Corporation (DFC) is a development institution for the development of the US federal government, which is primarily responsible for providing and enabling financing of private development projects in low- and middle-income countries.
DFC also has a lending authority. The credit capacity of the DFC is used to provide loans, loan guarantees and insurance for development projects in lower-income countries undertaken by US companies, Srbija Danas reports.
